TABLE 9-2 a Student Claims That He Can Correctly Identify Whether a Whether

question 68

Multiple Choice

TABLE 9-2
A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses. Suppose in actuality that if someone is a business major, the student can correctly identify that person as a business major 87% of the time. When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time. Presented with one person and asked to identify the major of this person (who is either a business or an agriculture major) , the student considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major.
-Referring to Table 9-2, what would be a Type II error?

• A) saying that the person is a business major when in fact the person is a business major
• B) saying that the person is a business major when in fact the person is an agriculture major
• C) saying that the person is an agriculture major when in fact the person is a business major
• D) saying that the person is an agriculture major when in fact the person is an agriculture major

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Equity Investments

Investments in stock or equity interests in entities, representing ownership interest.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.